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. Last Updated: 07/27/2016

Sentencing in Tips Case

NEW YORK -- James McDermott Jr., the former head of investment bank Keefe, Bruyette & Woods, on Thursday was sentenced to eight months in prison for passing on inside tips about merger deals to his porn star mistress.

U.S. Federal Judge Kimba Wood also fined McDermott $25,000 and ordered him to perform 300 hours of community service after he was convicted in April of conspiracy and fraud for insider trading. Prosecutors had charged him with giving his X-rated movie star girlfriend, Kathryn Gannon, 31, confidential information.

McDermott, Gannon, and Anthony Pomponio, a New Jersey businessman with whom Gannon was involved, were indicted in January for an alleged two-year insider trading scheme. Gannon allegedly passed McDermott's tips on to Pomponio and the two reaped more than $170,000 off them.